Top RE Development Firms ....salaries beyond junior roles?
After trying to do research on Glassdoor.com and reading the vault guide, etc... I'm still curious to know what salaries are like in the upper levels of the big RE Development firms. Places like Hines, Related, Trammell Crow.
I've noticed that most recent MBA's get hired as an assistant project manager at a low 6-figure salary 110-130k (all-in), and then after about two years move up to Project Manager at about 130-150k (all-in). However I'm not sure whether to believe these numbers. I feel like there might be hidden compensation when a project gets completed, which may be a lump-sum payout every few years when a buliding gets finished, or perhaps this only at levels higher than project manager?
I'm not exactly sure what the career track is after reaching project manager. Do people tend to stay at this level until reaching some form of partnerhship or MD? Or is there levels in between such as Senior PM, VP, Director, MD. I've heard that these exist, however I'm not sure how the pay varies as you move up the ranks, and whether there is clear progression path of promotion, or generally only a select few will ever make it past Project Manager? And of course how the pay varies across these levels, when do you start contributing towards the equity in projects? When does you salary become largely a variable of Project Success?
I would appreciate anyone who has insight on the big RE-Development firms and how things progress career wise after reaching the project manager level.
That sounds about right to me. I talked to a pretty smart guy who did this at one of the firms you mentioned after his Masters and, according to him, it's not just any development job. He claims that it's the type of opening Harvard MBAs pursue. I assume he was exaggerating, but it is a pretty serious gig.
I'd have a tough time answering your other questions, but for starters I'd be surprised if a giant behemoth of a corporation like Hines would have you contributing equity to their deals. I would expect the money to be pretty good as you climb the ladder, but I have no idea at that point. I am sure the exit opps would be top-notch.
Better question would be how likely it is you could land one of these jobs in this market. There isn't a whole lot going on.
Bump for salary info on Hines. This company has over 1000+ employees, and I haven't been able to find any salary info on their associate roles.
Bump again. Any salary info for Hines?
Hiring an MBA as an assistant project manager seems preposterous to me unless they have serious real estate backgrounds. It's inconceivable that a major developer would hire people who, ya know, don't know real estate to manage projects. Real estate, like no other industry, is all about accrued knowledge. At least in my market most project managers have engineering, architecture, or other relevant degrees or substantial experience.
Well, congratulations to Trammel Crow. And for every one of them there are hundreds of wealthy family RE investment and development firms that only hire experienced real estate professionals.
Often times everyone wants to aim for the Hines, TCR, and JBG of the worlds, but pay at smaller development firms is actually better. If you come in as a project manager, you have less of a corporate structure and these smaller and mid size developers are extremely entrepreneurial. This might not apply to every firm, but this has been my experience so far.
Don't know about anyone above associate level at Hines, but have quite a few contacts there. From what I've gathered most associates have MBAs and start around $130K, but I'm unsure about bonuses unfortunately. They usually have at least some real estate experience but some of the guys I know come from investment banking or other finance roles too. As mentioned above, a lot of large development firms don't have employees pony up their own money but use shadow equity that's loaned out and invested in the deal by the firm on their behalf. Definitely heard of MDs and SMDs making millions on big deals this way (obviously over a period of years though). Wish I had more info about base salaries though...
If you're working at a development firm for the salary.. you're doing it wrong. Get in, learn the biz, make your connections then start doing your own deals
I'd rather make $130k and learn "the biz" from the smartest/most experienced/best capitlized firm in the country than take a lower salary and learn from a good regional guy who has less brand recognition, less experience, and less access to capital. Just a thought.
Take this how you want to, but according to a national survey of real estate firms here is the breakdown for office development:
Low Mid High BonusTop Development Executive $190,500 $244,000 $320,400 65.20% Vice President/Director Development $154,200 $180,200 $210,000 38.90% Senior Development Manager $130,000 $151,100 $174,200 27.50% Development Manager $98,800 $113,300 $139,300 19.30% Senior Project Manager $102,500 $123,600 $139,500 16.70% Project Manager $77,600 $90,100 $107,400 14.80%
http://celassociates.com/prime/wp-content/uploads/2012/04/CELAssociates…
I am assuming the statistics are base and the % at the end would be bonus. What isn’t accounted for (at least at the executive level) would be a share of the firm’s promote. This is where the real $ is made in development. IBD associate would not come close if the promote is accounted for.
You're absolutely correct on the promote. Also, the % is the bonus number.
is that all in comp? so an associate in IB can hit the low Top Development Executive rung lol
That may be the case, but you also don't work 120 hrs a week. I work for a development company and most people come in at 9am out by 5pm. Average is 40-50 hrs a week, but there is extensive travel involved as we develop properties in multiple states.
it's true that Harvard MBA's and the like will pursue associate openings at hines, but that's not usually Assistant project manager, it's usually on the investment side specifically... but the position is also very low paying versus most REPE jobs or a banking job. As you move higher up at Hines you'll start to break into the carry, and then you can make solid money, plus your carry is usually on an individual project basis so you can be more diversified than a guy just managing one fund... having said all that, places like Hines and Tishman etc. are just simply not high paying places versus normal REPE type firms. They also have MUCH easier working hours though. It's a totally different work life balance, that's more like development than PE.
Top RE Developers by Region (Originally Posted: 06/17/2014)
My brother works for Hansel Phelps (large construction company) on the West Coast but would like to switch to the construction arm of a developer. As my REIT has never ventured into development, I'm not too familiar with the various firms (besides the ones in the Northeast). Who are the big players by region?
Donald Trump is dominant in every region. Look him up, he's a very respected developer
Is he the guy with that tv show on nbc?
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